UPDATE 1-Cincinnati Financial sees huge catastrophe losses in Q2

June 19 (Reuters) - Property casualty insurer Cincinnati
Financial Corp (CINF.O: Cotización) expects a 10-fold increase in
catastrophe losses for the second quarter and said its
investment income will be hurt by Fifth Third Bancorp's
(FITB.O: Cotización) cut in quarterly dividend.

Cincinnati, which owns about 67.3 million shares in Fifth
Third Bancorp, said its pre-tax dividend income will be reduced
by $19.5 million in each of the next three quarters due to
Fifth Third's dividend cut.

On June 18, Fifth Third slashed its quarterly dividend by
66 percent as it seeks to preserve capital to cope with
mounting credit losses.

The company said it expects about $115 million in
catastrophe losses in the second quarter, up from the $11
million it posted last year.

Combined ratio is the percentage of premiums an insurer has
to pay out in claims and expenses.

The company had earlier estimated a combined ratio of 96
percent to 98 percent.

Cincinnati Financial shares fell about 2 percent to $28.15
in trading after the bell. The shares had closed at $28.60 in
regular session on Nasdaq Thursday.
(Reporting by Amiteshwar Singh in Bangalore; Editing by
Gopakumar Warrier)